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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 13, 2025
CROCS, INC.
(Exact name of registrant as specified in its charter)
Delaware

0-51754

20-2164234
(State or other jurisdiction

(Commission File Number)

(I.R.S. Employer
of incorporation)
 

 
 

Identification No.)



500 Eldorado Blvd., Building 5

Broomfield,
Colorado
80021
(Address of principal executive offices)
 
 
(Zip Code)
 
 Registrant’s telephone number, including area code: (303) 848-7000
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading symbol:Name of each exchange on which registered:
Common Stock, par value $0.001 per shareCROXThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.45) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
    Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02. Results of Operations and Financial Condition.
 
On February 13, 2025, Crocs, Inc. (the “Company”) issued a press release reporting its results of operations for the three and twelve months ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 8.01. Other Events.

On February 13, 2025, the Company also announced that its Board of Directors (the “Board”) has increased the Company’s existing common stock repurchase authorization by $1.0 billion. Including this increase, approximately $1.3 billion remains available for repurchase under the Company’s common stock repurchase authorization as of the date of this Current Report on Form 8-K.

The number, price, structure and timing of the repurchases, if any, will be at the Company’s sole discretion and future repurchases will be evaluated by the Company depending on market conditions, liquidity needs, restrictions under the Company’s debt arrangements, and other factors. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not oblige the Company to acquire any particular amount of the Company’s common stock. The Board may suspend, modify, or terminate the repurchase program at any time without prior notice.

Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits.
 
Exhibit
No.
 
 
 
Description
 
99.1

104Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
CROCS, INC.
 
 
 
 
 
 
 
Date: February 13, 2025
By:
/s/ Susan Healy
 
 
 
 
Susan Healy
 
 
 
 
Executive Vice President and Chief Financial Officer
 
 


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Exhibit 99.1
 
crocslogogreena.jpg
 
Investor Contact:
Erinn Murphy, Crocs, Inc.
(303) 848-7005
emurphy@crocs.com
PR Contact:Melissa Layton, Crocs, Inc.
(303) 848-7885
mlayton@crocs.com

Crocs, Inc. Reports Record 2024 Results with Annual Revenues of $4.1 Billion, Growing 4% Over 2023

•Full-Year 2024 Diluted EPS Up 24% to $15.88 and Adjusted Diluted EPS Up 9% to $13.17
•Expects 2025 To Be Another Year of Positive Revenue Growth for Crocs, Inc., Led by the Crocs Brand
•Upsizes Share Repurchase Authorization by $1 Billion Resulting in Total Authorization Outstanding of Approximately $1.3 Billion
___________________________________________________________________________

BROOMFIELD, COLORADO — February 13, 2025 — Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for all, today announced its fourth quarter and full year 2024 financial results.

“We delivered another record year for Crocs, Inc. highlighted by revenue growth of 4% to $4.1 billion and adjusted earnings-per-share growth of 9%. We generated exceptional operating cash flow of approximately $990 million, which enabled us to return value to shareholders through more than $550 million in share repurchases, while fortifying our balance sheet through the pay down of approximately $320 million of debt,” said Andrew Rees, Chief Executive Officer.

Mr. Rees continued, “Our fourth quarter performance exceeded expectations across all metrics led by Crocs Brand growth of 4%, as the North American business outperformed our plan and China growth accelerated from the third quarter. HEYDUDE revenue was flat to last year, higher than anticipated as direct-to-consumer sales inflected to growth.”

“For 2025, we are expecting another year of revenue growth, led by mid-single digit growth in the Crocs Brand. We are pleased by the early signs of progress we made for HEYDUDE during the fourth quarter and are taking a prudent approach to how we shape 2025 guidance for HEYDUDE as we focus on reigniting the brand.”

Susan Healy, Chief Financial Officer added, “In 2024, we stepped up our investment in our brands while driving industry leading margins. We expect operating margin to be approximately 24.0% for 2025, and beyond this year, we are committed to maintaining an annual operating margin at or above this level. We believe that our continued investments in our brands and exceptional cash flow generation will support Crocs, Inc. for sustained growth and value creation over the long-term.”

Amounts referred to as “Adjusted” or “Non-GAAP” are Non-GAAP measures and include adjustments that are described under the heading “Reconciliation of GAAP Measures to Non-GAAP Measures.” A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below.

Fourth Quarter 2024 Operating Results (Compared to the Same Period Last Year)

•Consolidated revenues were $990 million, an increase of 3.1%, or 3.8% on a constant currency basis. Direct-to-consumer (“DTC”) revenues grew 5.5%, or 6.1% on a constant currency basis. Wholesale revenues contracted 0.2%, or grew 0.7% on a constant currency basis.
•Gross margin was 57.9% compared to 55.3%. Adjusted gross margin improved 220 basis points to 57.9% compared to 55.7%.

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•Selling, general, and administrative expenses (“SG&A”) of $373 million increased 16.1% from $321 million, and represented 37.7% of revenues compared to 33.5%. Adjusted SG&A of $373 million increased 23.0% from $303 million, and represented 37.7% of revenues compared to 31.6%.
•Income from operations of $200 million decreased 4.6% from $210 million, resulting in operating margin of 20.2% compared to 21.8%. Adjusted income from operations of $200 million decreased 13.5% from $231 million, resulting in adjusted operating margin of 20.2% compared to 24.1%.
•Diluted earnings per share of $6.36 increased 52.9% from $4.16. Adjusted diluted earnings per share of $2.52 decreased 2.3% from $2.58, which excludes the current period tax impact of intra-entity transactions.
•During the quarter, we repaid $75 million of debt. We repurchased approximately 2.0 million shares for $225 million at the average share price of $111.51, and at quarter-end, $324 million of share repurchase authorization remained available for future repurchases.

2024 Operating Results (Compared to Last Year)

•Consolidated revenues were $4,102 million, an increase of 3.5%, or 4.3% on a constant currency basis. DTC revenues grew 7.2%, or 7.8% on a constant currency basis. Wholesale revenues grew 0.2%, or 1.1% on a constant currency basis.
•Gross margin was 58.8% compared to 55.8%. Adjusted gross margin improved 230 basis points to 58.8% compared to 56.5%.
•SG&A of $1,388 million increased 18.3% from $1,173 million, and represented 33.8% of revenues compared to 29.6%. Adjusted SG&A of $1,363 million increased 19.7% from $1,139 million, and represented 33.2% of revenues compared to 28.7%.
•Income from operations of $1,022 million decreased 1% from $1,037 million, resulting in operating margin of 24.9% compared to 26.2%. Adjusted income from operations of $1,050 million decreased 4% from $1,099 million, resulting in adjusted operating margin of 25.6% compared to 27.7%.
•Diluted earnings per share of $15.88 increased 24.2% from $12.79. Adjusted diluted earnings per share of $13.17 increased 9.5% from $12.03, which excludes the current period tax impact of intra-entity transactions.
•During the year, we repaid $323 million of debt. We repurchased approximately 4.3 million shares for $551 million at an average share price of $127.94, and at year-end, $324 million of share repurchase authorization remained available for future repurchases.

Fourth Quarter 2024 Brand Summary (Compared to the Same Period Last Year)

•Crocs Brand: Revenues increased 4.0% to $762 million, or 4.9% on a constant currency basis.
◦Channel
▪DTC revenues increased 5.0% to $447 million, or 5.7% on a constant currency basis.
▪Wholesale revenues increased 2.7% to $315 million, or 3.8% on a constant currency basis.
◦Geography
▪North America revenues were flat at $471 million, and flat on a constant currency basis.
▪International revenues increased 11.5% to $291 million, or 13.7% on a constant currency basis.
•HEYDUDE Brand: Revenues were flat at $228 million.
◦Channel
▪DTC revenues increased 7.2% to $133 million.
▪Wholesale revenues decreased 8.6% to $95 million.

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2024 Brand Summary (Compared to Last Year)

•Crocs Brand: Revenues increased 8.8% to $3,278 million, or 9.8% on a constant currency basis.
◦Channel
▪DTC revenues increased 9.9% to $1,670 million, or 10.7% on a constant currency basis.
▪Wholesale revenues increased 7.6% to $1,608 million, or 8.8% on a constant currency basis.
◦Geography
▪North America revenues increased 3.1% to $1,833 million, or 3.2% on a constant currency basis.
▪International revenues increased 17.0% to $1,445 million, or 19.2% on a constant currency basis.
•HEYDUDE Brand: Revenues decreased 13.2% to $824 million.
◦Channel
▪DTC revenues decreased 3.9% to $368 million.
▪Wholesale revenues decreased 19.5% to $456 million.

Balance Sheet and Cash Flow (December 31, 2024 as compared to December 31, 2023)

•Cash and cash equivalents were $180 million compared to $149 million.
•Inventories were $356 million compared to $385 million.
•Total borrowings were $1,349 million compared to $1,664 million.
•Capital expenditures were $69 million compared to $116 million.


Crocs, Inc. Upsizes Share Repurchase Authorization To $1.3 Billion

Earlier this month, the Board approved a $1.0 billion increase to our share repurchase authorization, after which approximately $1.3 billion remained available for future common stock repurchases.

Financial Outlook

First Quarter 2025
With respect to the first quarter of 2025, we expect:
•Revenues to be down approximately 3.5% compared to the first quarter of 2024, at currency rates as of February 10, 2025. This includes an anticipated negative impact of approximately $19 million from foreign currency.
◦Crocs Brand to be down approximately 1% to flat compared to the first quarter of 2024.
◦HEYDUDE Brand to be down approximately 16% to 14% compared to the first quarter of 2024.
•Adjusted operating margin of approximately 21.5%, including an anticipated negative impact of approximately 80 bps from both foreign currency and announced and pending tariffs.
•Adjusted diluted earnings per share of $2.38 to $2.52. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.

Full Year 2025
With respect to 2025, we expect:
•Revenue growth of approximately 2% to 2.5% compared to full year 2024, at currency rates as of February 10, 2025. This includes an anticipated negative impact of approximately $62 million from foreign currency.
◦Crocs Brand to grow approximately 4.5% compared to full year 2024.
◦HEYDUDE Brand to be down approximately 9% to 7% compared to full year 2024.

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•Adjusted operating margin of approximately 24.0%, including an anticipated negative impact of approximately 60 bps from both foreign currency and announced and pending tariffs.
•Combined GAAP tax rate of approximately 21.5% and non-GAAP effective tax rate of approximately 18.0%.
•Adjusted diluted earnings per share of $12.70 to $13.15. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.
•Capital expenditures of $80 million to $100 million.

Conference Call Information

A conference call to discuss fourth quarter and full-year 2024 results is scheduled for today, Thursday, February 13, 2025, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through February 13, 2026 at this site.

About Crocs, Inc.:

Crocs, Inc. (Nasdaq: CROX), headquartered in Broomfield, Colorado, is a world leader in innovative casual footwear for all, combining comfort and style with a value that consumers know and love. The Company's brands include Crocs and HEYDUDE, and its products are sold in more than 80 countries through wholesale and direct-to-consumer channels. For more information on Crocs, Inc. visit investors.crocs.com. To learn more about our brands, visit www.crocs.com or www.heydude.com. Individuals can also visit https://investors.crocs.com/news-and-events/ and follow both Crocs and HEYDUDE on their social platforms.

Forward Looking Statements

This press release includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

These statements include, but are not limited to, statements regarding our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding first quarter and full year 2025 financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.

All information in this document speaks only as of February 13, 2025. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.

Category:Investors

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CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except per share data)

Three Months Ended December 31,Year Ended December 31,
2024202320242023
Revenues$989,773 $960,097 $4,102,108 $3,962,347 
Cost of sales416,847 429,400 1,691,850 1,752,337 
Gross profit572,926 530,697 2,410,258 2,210,010 
Selling, general and administrative expenses373,011 321,183 1,388,347 1,173,227 
Income from operations199,915 209,514 1,021,911 1,036,783 
Foreign currency losses, net(2,849)382 (6,777)(1,240)
Interest income576 1,181 3,484 2,406 
Interest expense(23,337)(36,444)(109,264)(161,351)
Other income, net929 (774)1,231 (326)
Income before income taxes175,234 173,859 910,585 876,272 
Income tax expense (193,675)(79,727)(39,486)83,706 
Net income $368,909 $253,586 $950,071 $792,566 
Net income per common share:
Basic$6.40 $4.19 $16.00 $12.91 
Diluted$6.36 $4.16 $15.88 $12.79 
Weighted average common shares outstanding:
Basic57,615 60,543 59,381 61,386 
Diluted58,027 60,977 59,832 61,952 


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CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and par value amounts)
December 31,
2024		December 31,
2023
ASSETS  
Current assets:  
Cash and cash equivalents$180,485 $149,288 
Restricted cash — current— 2 
Accounts receivable, net of allowances of $31,579 and $27,591, respectively257,657 305,747 
Inventories356,254 385,054 
Income taxes receivable4,046 4,413 
Other receivables22,204 21,071 
Prepaid expenses and other assets51,623 45,129 
Total current assets872,269 910,704 
Property and equipment, net244,335 238,315 
Intangible assets, net1,777,080 1,792,562 
Goodwill711,491 711,588 
Deferred tax assets, net872,350 667,972 
Restricted cash3,193 3,807 
Right-of-use assets307,228 287,440 
Other assets24,207 31,446 
Total assets$4,812,153 $4,643,834 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$264,901 $260,978 
Accrued expenses and other liabilities298,068 285,771 
Income taxes payable108,688 65,952 
Current borrowings— 23,328 
Current operating lease liabilities68,551 62,267 
Total current liabilities740,208 698,296 
Deferred tax liabilities, net4,086 12,912 
Long-term income taxes payable595,434 565,171 
Long-term borrowings1,349,339 1,640,996 
Long-term operating lease liabilities283,406 269,769 
Other liabilities 3,948 2,767 
Total liabilities2,976,421 3,189,911 
Commitments and contingencies
Stockholders’ equity:  
Common stock, par value $0.001 per share, 110.4 million and 110.1 million issued, 56.5 million and 60.5 million shares outstanding, respectively110 110 
Treasury stock, at cost, 53.9 million and 49.6 million shares, respectively(2,453,473)(1,888,869)
Additional paid-in capital859,904 826,685 
Retained earnings3,561,836 2,611,765 
Accumulated other comprehensive loss(132,645)(95,768)
Total stockholders’ equity1,835,732 1,453,923 
Total liabilities and stockholders’ equity$4,812,153 $4,643,834 

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CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Year Ended December 31,
20242023
Cash flows from operating activities:
Net income$950,071 $792,566 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization69,840 54,304 
Loss on disposal of assets958 419 
Operating lease cost85,130 79,543 
Inventory donations812 2,078 
Provision for doubtful accounts, net1,352 3,568 
Share-based compensation33,053 29,072 
Asset impairments24,081 9,287 
Deferred taxes(254,454)(410,319)
Other non-cash items13,213 3,401 
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities:
Accounts receivable, net of allowances42,587 (13,317)
Inventories22,055 86,350 
Prepaid expenses and other assets(13,892)(31,839)
Accounts payable3,951 37,197 
Accrued expenses and other liabilities9,971 46,695 
Right-of-use assets and operating lease liabilities(88,772)(75,107)
Income taxes92,530 316,546 
Cash provided by operating activities992,486 930,444 
Cash flows from investing activities:
Purchases of property, equipment, and software(69,347)(115,625)
Other— (46)
Cash used in investing activities(69,347)(115,671)
Cash flows from financing activities:
Proceeds from bank borrowings102,156 257,905 
Repayments of bank borrowings(425,405)(923,703)
Deferred debt issuance costs(2,277)(1,736)
Repurchases of common stock, including excise taxes paid(552,451)(175,019)
Repurchases of common stock for tax withholding(8,239)(17,086)
Other168 — 
Cash provided by (used in) financing activities(886,048)(859,639)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(6,510)3,078 
Net change in cash, cash equivalents, and restricted cash30,581 (41,788)
Cash, cash equivalents, and restricted cash — beginning of year153,097 194,885 
Cash, cash equivalents, and restricted cash — end of year$183,678 $153,097 

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CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”), we present "Non-GAAP gross profit," “Non-GAAP gross margin,” “Non-GAAP gross margin by brand,” "Non-GAAP selling, general, and administrative expenses,” “Non-GAAP selling, general and administrative expenses as a percent of revenues,” “Non-GAAP income from operations,” “Non-GAAP operating margin,” “Non-GAAP income before income taxes,” “Non-GAAP income tax expense,” “Non-GAAP effective tax rate,” “Non-GAAP net income,” and “Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for “Non-GAAP operating margin,” “Non-GAAP effective tax rate,” “Non-GAAP diluted earnings per share,” and “Free cash flow.” Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

We also present certain information related to our current period results of operations through “constant currency,” which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies.

Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers.

Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations, such as costs related to the integration of HEYDUDE and other costs that are expected to be non-recurring in nature.

Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a useful basis to compare performance in the period to prior periods.

Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a useful basis to compare performance in the period to prior periods.

Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income.

Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting.

Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of

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Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.

Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.

Free cash flow is calculated as ‘Cash provided by operating activities’ less ‘Purchases of property, equipment, and software.’ Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt.

For the three and twelve months ended December 31, 2024, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Non-GAAP Financial Guidance

Our forward-looking guidance for consolidated “adjusted operating margin” and “adjusted diluted earnings per share” represents non-GAAP financial measures that may exclude or otherwise have been adjusted for special items from our U.S. GAAP financial statements. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures for the guidance related to the first quarter of 2025. As of the date hereof, we do not anticipate any adjustments to full year 2025 operating margin, combined tax rate, or earnings per share such that our guidance for full year 2025 “adjusted operating margin,” “non-GAAP effective income tax rate,” and “adjusted diluted earnings per share” is the equivalent of guidance to their respective most directly comparable GAAP financial measure. As a result, we have not included reconciliations of these non-GAAP financial measures to their respective most directly comparable GAAP financial measures.


9

CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(UNAUDITED)

Non-GAAP gross profit and gross margin reconciliation:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(in thousands)
GAAP revenues$989,773 $960,097 $4,102,108 $3,962,347 
GAAP gross profit$572,926 $530,697 $2,410,258$2,210,010 
Distribution centers (1)
— 3,667 3,24227,331 
Non-GAAP gross profit$572,926 $534,364 $2,413,500$2,237,341 
GAAP gross margin
57.9 %55.3 %58.8%55.8 %
Non-GAAP gross margin
57.9 %55.7 %58.8%56.5 %
(1) During the year ended December 31, 2024, adjustments primarily relate to costs to transition to our new HEYDUDE distribution center in Las Vegas, Nevada. During the three months and year ended December 31, 2023, adjustments represent expenses, including expansion costs and duplicate rent costs, related to our distribution centers in Dayton, Ohio and Las Vegas, Nevada.

Non-GAAP gross margin reconciliation by brand:

Crocs Brand:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
GAAP Crocs Brand gross margin60.9 %59.4 %61.6%60.0 %
Non-GAAP adjustments:
Distribution centers (1)
— %0.1 %— %0.2 %
Non-GAAP Crocs Brand gross margin60.9 %59.5 %61.6 %60.2 %
(1) Represents prior year expenses, including expansion costs and duplicate rent costs, primarily related to our distribution centers in Dayton, Ohio.

HEYDUDE Brand:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
GAAP HEYDUDE Brand gross margin47.7 %44.3 %47.7 %44.0 %
Non-GAAP adjustments:
Distribution centers (1)
— %1.2 %0.4 %2.2 %
Non-GAAP HEYDUDE Brand gross margin47.7 %45.5 %48.1 %46.2 %
(1) Represents prior year expenses, including expansion costs, duplicate rent costs, and transitional storage costs, related to our distribution center in Las Vegas, Nevada.

10

Non-GAAP selling, general and administrative reconciliation:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(in thousands)
GAAP revenues$989,773 $960,097 $4,102,108 $3,962,347 
GAAP selling, general and administrative expenses
$373,011 $321,183 $1,388,347 $1,173,227 
Impairment related to information technology systems (1)
— — (18,172)
Impairment related to distribution centers (2)
— — (6,933)
Information technology project discontinuation— — — (4,119)
HEYDUDE integration costs— (1,064)— (3,025)
Duplicate headquarters rent (3)
— (9,992)— (13,161)
Other (4)
— (6,861)— (14,218)
Total adjustments— (17,917)(25,105)(34,523)
Non-GAAP selling, general and administrative expenses (5)
$373,011 $303,266 $1,363,242 $1,138,704 
GAAP selling, general and administrative expenses as a percent of revenues
37.7 %33.5 %33.8 %29.6 %
Non-GAAP selling, general and administrative expenses as a percent of revenues
37.7 %31.6 %33.2 %28.7 %
(1) Represents an impairment of information technology systems related to the HEYDUDE integration.
(2) Primarily represents an impairment of the right-of-use assets for our former HEYDUDE Brand warehouses in Las Vegas, Nevada associated with our move to our new distribution center and an impairment of the right-of-use asset for our former Crocs Brand warehouse in Oudenbosch, the Netherlands.
(3) Represents duplicate rent costs associated with our move to a new headquarters.
(4) Includes various restructuring costs, as well as costs associated with the implementation of a new enterprise resource planning system.
(5) Non-GAAP selling, general and administrative expenses are presented gross of tax.


11

Non-GAAP income from operations and operating margin reconciliation:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(in thousands)
GAAP revenues$989,773 $960,097 $4,102,108 $3,962,347 
GAAP income from operations$199,915 $209,514 $1,021,911 $1,036,783 
Non-GAAP gross profit adjustments (1)
— 3,667 3,242 27,331 
Non-GAAP selling, general and administrative expenses adjustments (2)
— 17,917 25,105 34,523 
Non-GAAP income from operations$199,915 $231,098 $1,050,258 $1,098,637 
GAAP operating margin20.2 %21.8 %24.9 %26.2 %
Non-GAAP operating margin20.2 %24.1 %25.6 %27.7 %
(1) See 'Non-GAAP gross profit and gross margin reconciliation' above for more details.
(2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more details.

Non-GAAP income tax expense (benefit) and effective tax rate reconciliation:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(in thousands)
GAAP income from operations$199,915 $209,514 $1,021,911 $1,036,783 
GAAP income before income taxes175,234 173,859 910,585 876,272 
Non-GAAP income from operations (1)
$199,915 $231,098 $1,050,258 $1,098,637 
GAAP non-operating income (expenses):
Foreign currency losses, net(2,849)382 (6,777)(1,240)
Interest income576 1,181 3,484 2,406 
Interest expense(23,337)(36,444)(109,264)(161,351)
Other income, net929 (774)1,231 (326)
Non-GAAP income before income taxes$175,234 $195,443 $938,932 $938,126 
GAAP income tax expense$(193,675)$(79,727)$(39,486)$83,706 
Tax effect of non-GAAP operating adjustments(211)5,515 6,929 15,591 
Impact of intra-entity IP transactions (2)
222,117 112,483 182,785 93,250 
Non-GAAP income tax expense$28,231 $38,271 $150,228 $192,547 
GAAP effective income tax rate(110.5)%(45.9)%(4.3)%9.6 %
Non-GAAP effective income tax rate16.1 %19.6 %16.0 %20.5 %
(1) See ‘Non-GAAP income from operations and operating margin reconciliation’ above for more details.
(2) In the fourth quarter of 2024, and previously in 2023, 2021 and 2020, we made changes to our international legal structure, including an intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations. The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transactions.

12

Non-GAAP net income per share reconciliation:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(in thousands, except per share data)
Numerator:
GAAP net income$368,909 $253,586 $950,071 $792,566 
Non-GAAP gross profit adjustments (1)
— 3,667 3,242 27,331 
Non-GAAP selling, general and administrative expenses adjustments (2)
— 17,917 25,105 34,523 
Non-GAAP other income adjustment (3)
(842)— (842)— 
Tax effect of non-GAAP adjustments (4)
(221,906)(117,998)(189,714)(108,841)
Non-GAAP net income
$146,161 $157,172 $787,862 $745,579 
Denominator:  
GAAP weighted average common shares outstanding - basic
57,615 60,543 59,381 61,386 
Plus: GAAP dilutive effect of stock options and unvested restricted stock units
412 434 451 566 
GAAP weighted average common shares outstanding - diluted
58,027 60,977 59,832 61,952 
GAAP net income per common share:
Basic$6.40 $4.19 $16.00 $12.91 
Diluted$6.36 $4.16 $15.88 $12.79 
Non-GAAP net income per common share:
Basic$2.54 $2.60 $13.27 $12.15 
Diluted$2.52 $2.58 $13.17 $12.03 
(1) See 'Non-GAAP gross profit and gross margin reconciliation' above for more information.
(2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more information.
(3) Represents the impact of the early lease termination for our former HEYDUDE Brand warehouse in Las Vegas, Nevada for which we previously recognized impairment associated with our move to our new distribution center.
(4) See ‘Non-GAAP income tax expense (benefit) and effective tax rate reconciliation’ above for more information.

Free cash flow reconciliation:
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(in thousands)
Cash provided by operating activities$321,937 $349,718 $992,486$930,444 
Purchases of property, equipment, and software(18,490)(29,247)(69,347)(115,625)
Free cash flow
$303,447 $320,471 $923,139 $814,819 

13

CROCS, INC. AND SUBSIDIARIES
REVENUES BY SEGMENT, CHANNEL, AND GEOGRAPHY
(UNAUDITED)
Three Months Ended December 31,
Year Ended December 31,
% Change
Constant Currency
% Change (1)
Favorable (Unfavorable)
2024202320242023
Q4 2024-2023
YTD 2024-2023
Q4 2024-2023
YTD 2024-2023
($ in thousands)
Crocs Brand:
North America:
Wholesale$128,084 $134,884 $644,511 $652,943 (5.0)%(1.3)%(4.9)%(1.2)%
Direct-to-consumer$342,893 $336,392 $1,188,911 $1,124,942 1.9 %5.7 %2.1 %5.8 %
Total North America (2)
470,977 471,276 1,833,422 1,777,885 (0.1)%3.1 %0.1 %3.2 %
International:
Wholesale186,615 171,572 963,035 840,594 8.8 %14.6 %10.7 %16.7 %
Direct-to-consumer104,472 89,609 481,510 394,475 16.6 %22.1 %19.4 %24.7 %
Total International291,087 261,181 1,444,545 1,235,069 11.5 %17.0 %13.7 %19.2 %
Total Crocs Brand$762,064 $732,457 $3,277,967 $3,012,954 4.0 %8.8 %4.9 %9.8 %
Crocs Brand:
Wholesale$314,699 $306,456 $1,607,546 $1,493,537 2.7 %7.6 %3.8 %8.8 %
Direct-to-consumer447,365 426,001 1,670,421 1,519,417 5.0 %9.9 %5.7 %10.7 %
Total Crocs Brand762,064 732,457 3,277,967 3,012,954 4.0 %8.8 %4.9 %9.8 %
HEYDUDE Brand:
Wholesale94,872 103,748 456,472 566,937 (8.6)%(19.5)%(8.3)%(19.5)%
Direct-to-consumer132,837 123,892 367,669 382,456 7.2 %(3.9)%7.2 %(3.9)%
Total HEYDUDE Brand (3)
227,709 227,640 824,141 949,393 — %(13.2)%0.1 %(13.2)%
Total consolidated revenues$989,773 $960,097 $4,102,108 $3,962,347 3.1 %3.5 %3.8 %4.3 %
(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See ‘Reconciliation of GAAP Measures to Non-GAAP Measures’ above for more information.
(2) North America includes the United States and Canada.
(3) The vast majority of HEYDUDE Brand revenues are derived from North America.

14

CROCS, INC. AND SUBSIDIARIES
DIRECT-TO-CONSUMER COMPARABLE SALES
(UNAUDITED)

Direct-to-consumer (“DTC”) comparable sales were as follows:
Constant Currency (1)
Three Months Ended December 31,Year Ended December 31,
2024202320242023
Direct-to-consumer comparable sales: (2)
Crocs Brand 0.3 %10.7 %7.2 %15.5 %
HEYDUDE Brand(8.3)%(14.2)%(14.6)%3.6 %
(1) Reflects period over period change on a constant currency basis, which is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for more information.
(2) Comparable store status, as included in the DTC comparable sales figures above, is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure and in the same month in the following year. Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce comparable revenues are based on same site sales period over period. E-commerce sites that are temporarily offline or unable to transact or fulfill orders (“site disruption”) are excluded from the comparable sales calculation during the month of site disruption and in the same month in the following year. E-commerce site disruptions in excess of three months are excluded until the thirteenth month after the site has re-opened. Additionally, comparable sales do not include leap days in leap years.



15
v3.25.0.1
Document and Entity Information Document
Feb. 13, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 13, 2025
Entity Registrant Name CROCS, INC.
Entity Central Index Key 0001334036
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 0-51754
Entity Tax Identification Number 20-2164234
Entity Address, Address Line One 500 Eldorado Blvd., Building 5
Entity Address, City or Town Broomfield,
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80021
City Area Code 303
Local Phone Number 848-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol CROX
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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